Why do many CEOs have difficulty delegating? What does AI have to do with it?

Delegating tasks is part of the routine of executives in high leadership positions. It is an attitude that contributes to the improvement of the team’s competence and even helps keep employees motivated. However, for many, granting tasks and responsibilities for others to perform is still a major challenge. A Gallup study, State of the Global Workplace 2023, conducted with over 1,400 executives in the United States, identified that three-quarters of the respondents have difficulty delegating.

For Rodrigo Magalhães, partner at EXEC, many CEOs end up getting involved in operational issues for reasons that may include lack of confidence, courage, and a good dose of perfectionism. “Confidence is an important element when delegating tasks and has a strong connection with courage. To trust others, one needs the audacity to transfer some decisions and actions to their direct and indirect team,” he says.

For Magalhães, delegating does not necessarily mean that the activity will not be supervised. “Even if the CEO delegates a task, a role, or an activity, it will need to be monitored so that he can stay informed about what is happening,” he states.

Furthermore, according to him, the difficulty in delegating can also be linked to the personal characteristics of the professional, such as being controlling and perfectionist.

The difficulty in delegating can generate some negative impacts not only for the professional but also for the company. Among the points highlighted by Rodrigo in this regard are the absence of long-term vision, lack of attention to what happens in the market, as well as the lack of focus on macro objectives. “The CEO who is very focused on day-to-day tasks ends up having less time to think about innovation, transformation, and the future. He loses a lot by not looking outside the company, missing out on what’s happening in the market, as well as not paying attention to the broader goals of the organization, involving major transformational actions that help move the company forward.”

Can AI Harm a CEO’s Delegating Ability?

The advent of Artificial Intelligence (AI) has brought some fears to the market that technology may replace some positions and, for some, may further reinforce the fear of delegating tasks or functions. According to a survey conducted by ADN Digital in some countries, CEOs are fearful of being replaced by machines – 43% of the respondents confirmed feeling this insecurity. “I recently participated in a forum in London that brought up this issue for discussion. Some elements in this regard have not yet evolved, especially regarding value judgment, that is, AI still does not clearly know what is right and wrong,” emphasizes Rodrigo.

The partner at EXEC reassures and informs that AI should not replace a CEO because it is not capable of bringing an important attribute to decision-making, intuition. “For decision-making, the final word is still that of a human, who commits to information, action, diagnosis, or solution, and uses AI as decision support in building.”

Magalhães also points out that AI can help the CEO on various fronts, whether in decision-making, providing market insights and analysis, as well as assisting in formulating business strategies based on trends and updated data. “In addition, it can enhance corporate communication, assisting in the drafting and revision of corporate documents, such as reports, important emails, speeches, and announcements, and contribute to time management,” he emphasizes. According to ADN’s research, 45% of executives stated that they make decisions based on data and information using ChatGPT.

The EXEC partner also emphasizes that AI can provide support in generating creative ideas for the development of new products, services, or marketing strategies, as well as creating educational materials and providing personalized content for team training or individual professional development. “ChatGPT, for example, has a lot of information and a broad database, which is important to understand what the market is doing, as well as facilitate the creation of training and development content for employees,” he emphasizes.

According to the EXEC partner, a CEO who does not embrace AI may lose space in the market. 

How to delegate more and become more strategic?

In a moment of great market transformations, Rodrigo has chosen five tips to help the CEO let go of operational routines and become more strategic.

  1. Have a good “No. 1.” “It is important that they are surrounded by good leaders below them, such as vice presidents, directors, and managers who can tackle operational issues. They need to be very good so that the CEO can trust them”;
  2. Establish routines to monitor broader goals. ‘This also involves establishing some management rituals so that the CEO does not feel too distant from what the day-to-day activities are,’
  3. Use technology to keep track of what is happening. ‘But this does not mean that the leader needs to be copied on every email, message, or be in every WhatsApp group,’ warns.
  4. Practice delegating every day and question yourself at all times. ‘It is a behavioral exercise, letting people make decisions and avoiding centralization of management,’

For Magalhães, the role of the CEO is to lead the team, define strategies, and make decisions that require creativity, business vision, and empathy. ‘It is by delegating that the leader can bring out the best from their teams and exercise strategic people management,’ concludes.